How do rating agencies seek to limit the exposure of a pool of loans to concentration risk?
What will be an ideal response?
Rating agencies will seek to limit the exposure of a pool of loans to concentration risk by setting limits on the amount or percentage of receivables from any one borrower. These limits are called concentration limits. Even if the exposure cannot be perfectly limited there are still other ways to achieve a desire rating.
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Using avatars for training purposes would be an example of _____.
A. benchmarking B. action learning C. adventure learning D. simulation E. orientation
A company shows a balance in Salaries Payable of $38,000 at the end of the month. The next payroll amounting to $48,000 is to be paid in the following month. What will be the journal entry to record the payment of salaries?
A. Debit Salaries Expense for 10,000, debit Salaries Payable for 38,000 and credit Cash for 48,000 B. debit Salaries Expense for 48,000 and credit Cash for 48,000 C. debit Salaries Expense for 10,000 and credit Cash for 10,000 D. debit Salaries Expenses for 48,000 and credit Salaries Payable for 48,000